Michael Burry Warns of $176B Tech Depreciation Time Bomb—Are FAANG Stocks Sitting on a Ticking Time Bomb?
Wall Street's prophet of doom strikes again—this time targeting tech's sacred cows.
The Big Tech Black Hole: $176B in Phantom Value
Burry's latest salvo exposes what earnings reports don't show: massive asset value erosion hiding in plain sight. Cloud infrastructure ages like milk, patents lose potency, and those 'strategic acquisitions'? More like expensive paperweights.
Depreciation vs. Reality: When Accounting Fiction Meets Hard Math
Tech giants play depreciation shell games—stretching asset lifespans on paper while real-world tech becomes obsolete at lightspeed. That $176B gap? The difference between boardroom storytelling and actual balance sheet health.
Silicon Valley's Dirty Little Secret: Depreciation Is Their Best Growth Hack
Slower write-downs mean juiced-up earnings—until the music stops. Meanwhile, crypto projects get flak for volatility while tech titans quietly run the oldest accounting trick in the book.
Wake-Up Call or False Alarm? Either Way, Investors Should Check Their Exposure
Burry's track record means you can't ignore this. But remember—the same tech giants crying poor on depreciation are the ones sitting on enough cash to buy small nations. Typical corporate theater: cry poverty while swimming in Scrooge McDuck money vaults.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
According to Burry’s estimates, Oracle (ORCL) could overstate earnings by 26.9% by 2028, and Meta (META) may inflate profits by 20.8% over the same period.
This latest warning follows Burry’s disclosure in early November 2025 of owning put options against Nvidia (NVDA) and Palantir (PLTR), reflecting a bearish bet on the AI industry.
Importantly, Burry has stated he will provide more details on November 25, 2025.
Burry Raises Red Flags Over AI Hardware Depreciation
Burry’s concern centers on how tech giants, specifically “hyperscalers” using Nvidia chips, are extending the “useful life” of their computing and networking equipment, calling it “one of the more common frauds of the modern era.”
By stretching depreciation schedules from the typical 2 to 3 years to as long as 5 to 6 years, the companies reduce reported expenses, making profits appear stronger than they actually are.
His concerns target companies such as Meta, Alphabet (GOOGL), Microsoft (MSFT), Oracle, and Amazon (AMZN).
Which Is the Best AI Stock to Buy, According to Analysts?
Here’s a list of top-rated AI stocks, according to Wall Street analysts. Let’s compare them using the TipRanks Stock Comparison Tool to see which looks most attractive.
